Effective January 1, 2021, CAW will include 100 cubic feet of water with account base charge

LITTLE ROCK – Effective January 1, 2021, 100 cubic feet of water (approximately 750 gallons) will be included in the base charge (also known as the Minimum Monthly Charge) on consumer accounts.

After careful consideration of operational efficiency moving forward, the CAW Board of Commissioners adopted Resolution 2020-14, update to Resolution 2018-13, adjusting the utility’s base charge following its monitoring lower-than-average temperatures and increased rain over the past four years resulting in less water usage and decrease revenue. Water consumption has been more than 2% below CAW’s budget for the past several years; additionally, the global coronavirus pandemic and a multi-month suspension of water shut offs also led to decreased revenue at CAW.

The 100 cubic feet of water included in the monthly base charge was a necessity to continue running a sustainable utility. This practice is also seen across the industry in the United States. CAW still compares favorably to water utilities across the nation and has the fifth lowest water rate of utilities in the U.S. who participated in the 2020 Memphis Light Gas and Water study.

There are no increases to CAW water rates through 2022. The board has the authority to further increase or decrease the amount of water included in the minimum monthly base charge in the future based on adequate cash reserves and revenues available to meet CAW’s operating, maintenance and capital expenditures.

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